Tag: Inspiration

Goods can be classified by their consumption rivalry and ability to exclude non- players. We have learned the classification of goods by their rivalry and excludability in the lecture. Diagram 3 presents the categories of goods. Food, clothing, and car are private goods that can be consumed by only one person and by payment. Fish in the open sea and public waterways are commons goods that can be consumed by only oneperson, but consumers don’t pay. Cable television and music in iTunes are low- congestion goods that consumers can only use it after payment, but they can be consumed by as many people as the technology allows. The fourth classification of goods is public goods, like the law and search engine, which are shared by many people and no one gets charged.

I am curious if there is an example can fit in all the four quadrants that are rivalrous/excludable, non-rivalrous/excludable, rivalrous/non-excludable and non- rivalrous/non-excludable. I haven’t found a specific good or service that can be in allcategories. However, in most situation, a system consists of all kinds of goods. For example, the hotel. People consumed the private room, public waterways, WIFI, beautiful view, sunshine, and many other kinds of offerings when living in it. To managing value creation, the hotel manager must put forward good ideas to organize all the resources and cost. Especially for the commons goods, it is changeling to control the use and transfer.

Accumulation of knowledge can be regarded as the economics of ideas, and the collection of information can be an important process of idea evaluation. We learned the theory of value in the lectures and the recommended readings. It consists of all the theories with the points of economics that attempt to explain the exchange value or price of goods and services. We have learned new growth theory from the lecture. The argument of the significance of the technology in economic processes is interesting. The roles that information and knowledge play in ideation and value creation are changing the competition: something new arises, and the old system will be replaced. As a designer, we should not neglect the technological improvements, since it may lead the industries revolutions. The updates of technology will inspire us, at the same time, we can make some assumptions about future trends according to the information. Also, it is interesting when we consider knowledge and information as our offerings, the products or services. For example, the platform which allows people to share videos is getting popular. The online tutorial platform and the live streaming videos platform have a large number of audiences than cinemas do. What these platforms provided is a new form of intangible value.